DUBLIN, Dec 1, 2016 /PRNewswire/ -- Research and Markets has announced the addition of the "Global Aerospace Insurance Market 2016-2020" report to their offering.
The report forecasts the global aerospace insurance market to decline at a CAGR of -0.37% during the period 2016-2020. The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. Aviation insurance covers liabilities originating from ground handling, passenger injuries, delays, baggage liability, injuries because of accidents, and aviation product liability. The premium paid depends on the size of operations in an airport, air traffic data, and the number of airlines using the services of an airport. As a result of an increase in the number of airports, demand for ground handling, and aircraft fueling, aviation product liabilities will also increase, which can lead to two or more insurers covering business segments of an airport during the forecast period. According to the report, the soft market conditions in the global aerospace insurance market are expected to get a push from the establishment of new airports that will need services such as ground handling. Recently, with the development of "smart airports," a number of automated systems have been implemented for passengers who prefer self-service. These automated systems are usually deployed across the airport facilities, from check-in kiosks to baggage handling systems. Further, the report states that lack of awareness about insurance as a protection tool and inadequate details about the types of insurance products pose a major threat to the market. This often keeps potential clients away, which is one of the primary reasons for the slow growth of the market. The insurance service providers usually offer services for mid- to long-term period. Thus, the customer tends to avoid investing in such policies in a market as volatile as aerospace, where the profitability of the carriers is highly dependent on the cost of jet fuel.